The need for a digital pound arises from the changing landscape of payment systems. Digital currencies, including CBDCs and stablecoins, offer direct peer-to-peer transactions so reducing reliance on traditional banks. The potential benefits include cost reduction, efficiency improvement and increased transparency. With global payments estimated to surpass $3trillion by 2027, embracing digital currencies is crucial for financial innovation. Furthermore, providing consumers with choices (including digital bank accounts) can foster competition.